Medical Loss Ratio (MLR) Joint Hearings

Since May 4, 2010, the Office hosted two joint public hearing with the
Florida Health Insurance Advisory Board (FHIAB) to gather information related to
federal health care implementation and its potential impact on Florida,
specifically as it relates to the Medical Loss Ratio (MLR). "Although very
technical, the Medical Loss Ratio requirements included in the recently passed
federal health reform legislation could dramatically alter the health insurance
marketplace," remarked Commissioner McCarty. "These public hearings are intended
to be a fact-finding exercise to determine the potential impact of federal MLR
requirements on the health insurance marketplace." The MLR is the percentage of
health insurance premiums dedicated to payment of medical expenses and quality
improvement. The federal health reform legislation recently passed by Congress
requires health insurance companies to maintain minimum loss ratios for major
medical insurance.